Tax savings.

How can we make sure that we don't pay tax un-necessarily?

Being from the UK this may seem slightly biased to UK Residents but please try and apply it to your own country and systems.

What is the point in having savings accounts?

Rather a strange question? Well, I will explain this for you:-

As a UK Tax payer, you probably earn yourself a living where be it at the end of the week, Bi-weekly or monthly you receive a payslip with your earnings explained for the previous period of work. It always seems that the deductions section is a large section, we never seem to complain and we make provisions with the remaining amount that hits our bank accounts/back pockets. From this amount, we look to make savings hoping to earn interest, but is this really what we should be doing?

No!

What most people do not realise is that when they save and earn interest, they then pay a great proportion of this interest in tax..

What should we be doing?

Rather than having savings we should be looking at investments, whether this be ISA's or any other tax free saving method is entirely your choice but you should really make the most of this opportunity.

In my next post I will explain other ways to save money which will appeal to those of you with Mortgages.